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FOCUS POINT

 In  order  to revive around  1,600   areas  across  the country by 2022,

 stalled  housing projects across   under  the  ambitious  Pradhan  Mantri
 top  cities  in  the  country,  the  Union   Awas  Yojana  (PMAY)  scheme  of

 Cabinet has approved the setting up   the  Union  Ministry  of  Housing  and
 of Rs. 25,000 crore (US$ 3.58 billion)   Urban  Affairs. Expected growth in

 alternative  investment  fund  (AIF).  the number of housing units in urban


 Government has  created  an  Afford-  areas  will  increase  the  demand  for
 able Housing Fund (AHF) in the National   commercial  and  retail  office space.

 Housing  Bank  (NHB) with an  initial   The  current  shortage  of  housing  in
 corpus of Rs. 10,000 crore (US$ 1.43   urban  areas  is  estimated  to  be  ~10

 billion)  using  priority  sector  lending   million units. An additional 25 million
 short fall  of  banks/financial  institu-  units  of affordable  housing are

 tions for micro financing of the HFCs.  required by 2030 to meet the growth


 As of January 31,  2021,  India   in  the  country’s  urban  population.
 formally  approved  425  SEZs,  of   The growing flow of FDI  in Indian

 which  265  were  already  opera-  real estate is encouraging increased
 tional. Most special economic zones   transparency.  Developers,  in  order

 (SEZs)  are in the IT/ BPM sector
 to  attract  funding,  have  revamped

 their  accounting and  management
 ROAD AHEAD
 The  Securities  and  Exchange  Board   systems to meet due diligence stan-

 of India (SEBI) has given its approval   dards. Indian real estate is expected
 for the Real Estate Investment Trust   to attract a  substantial  amount of

 (REIT)  platform,  which  will  allow  all   FDI  in  the  next  two  years  with  US$
 kind  of  investors  to  invest  in  theIn-  8  billion capital  infusion  by  FY22.

 dian  real  estate  market.  It  would
 create an opportunity worth Rs..1.25   References:  Media  Reports,

 trillion (US$ 19.65  billion)  in the   Press  releases,  Knight  Frank

 Indian market in the coming  years.   India,  VCEdge,  JLL  Research,
 CREDAI-JL,  Union Budget 2021-22
 The  residential  sector is  expected   Note:  Conversion  rate  used  in

 to grow significantly, with the central   October  2021,  Rs.  1  =  US$  0.013

 government  aiming  to  build  20
 million  affordable  houses  in  urban   Major Source: IBEF


 |30  thecorporatereview.com  | India  | Vol. 3  |  Issue  5| July 2022                                     |31
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